What to do if I was rear-ended and my car was totaled but I still owe on it?

The police report faults the other driver If the insurance company only gives me enough to pay it off do I have the right to sue for what would be a down payment on a new vehicle? And is it appropriate?

Asked on January 30, 2013 under Accident Law, Louisiana


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

In such a case as this, you will receive the fair market value for your car. An insureris required to only compensate you for fair market value of your vehicle. This may be more or less than you still owed on your car loan. if you are not fully compensated for your loss, check to see if you have "GAP" insurance; this insurance pays the difference between what an owenr is paid for their vehicle and the amount they still on it. If not, the yes, you can sue the at-fault driver from any sums that you will be out-of-pocket.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.